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Roche Brothers is considering a capacity expansion of its supermarket. The landowner will build the addition...

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General Management

Roche Brothers is considering a capacity expansion of itssupermarket. The landowner will build the addition to suit inreturn for ?$200 comma 000 upon completion and a? five-year lease.The increase in rent for the addition is ?$11 comma 000 per month.The annual sales projected through year 5 follow. The currenteffective capacity is equivalent to? 500,000 customers per year.Assume a 3 percent pretax profit on sales. LOADING... Click theicon to view the annual sales projections. a. If Roche expands itscapacity to serve? 700,000 customers per year now? (end of year?0), what are the projected annual incremental pretax cash flowsattributable to this? expansion? The projected annual incrementalpretax cash flows attributable to this expansion in year 0 are ?$nothing. ?(Enter your response as an integer?.) AND FOR YEARS1-5

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a Under the first scenario the contributions situation would beas followsThe total contributions in the five    See Answer
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